Federal Direct Subsidized Loan
Who is eligible?
Undergraduate students based on financial need.
How do I apply?
Complete the Free Application for Federal Student Aid at: studentaid.gov
BHSU will send you a financial aid offer indicating your maximum Federal Direct Subsidized Loan eligibility and will provide you with instructions on how to accept it. Please review the Award Handbook for your rights and responsibilities as a student borrower and if you have questions, please contact the Financial Aid Office.
Once student has completed paperwork, the student is awarded aid. Direct Subsidized Loans are based on need left after all other need-based aid is awarded. When reviewing eligibility, all Subsidized will be given prior to Unsubsidized.
Amount Available
- Maximum Annual Eligibility (beginning July 1, 2007):
- Freshman -- $3,500
- Sophomore -- $4,500
- Junior/Senior -- $5,500
- Cumulative Totals:
Cost & Fees
- up to 1.1% fee on each loan.
- Interest is paid by federal government during the grace period on loans disbursed prior to July 1, 2012. After July 1, 2012, all new loans interest begins at time of dropping below half-time/graduation. Beginning July 1, 2014, the federal government will pay interest during grace period on new loans.
Repayment
- Interest rate is a fixed of 2.75% beginning July 1, 2020 for undergraduate students. New interest rates will be determined each July 1st of each year, with that interest rate being fixed for lifetime of loan.
- Interest is paid on the Direct Subsidized Loan by the federal government while the student is in school (except between July 1, 2012, and June 30, 2013, those loans will NOT have interest paid during the grace period or deferment periods).
- Repayment starts six months after graduation, withdrawal or dropping below half-time enrollment.
- $50 minimum monthly; 10-year maximum repayment period.
- For more information about repayment please contact your loan servicer(s).
- Review studentloans.gov for your servicer and total borrowings of federal loans.
Federal Direct Unsubsidized Loan
Who is eligible?
Undergraduate, graduate, and professional students are eligible. Eligibility is not based on financial need.
How do I apply?
Complete the Free Application for Federal Student Aid at: studentaid.gov
BHSU will send you a financial aid offer indicating your maximum Federal Direct Subsidized Loan eligibility and will provide you with instructions on how to accept it. Please review the Award Handbook for your rights and responsibilities as a student borrower and if you have questions, please contact the Financial Aid Office.
Once student has completed paperwork, the student is awarded aid. Direct Unsubsidized Loans are based on remaining cost after all other aid is awarded. When reviewing eligibility, all Subsidized will be given prior to Unsubsidized.
Amount Available
- Maximum Annual Eligibility:
- Dependent Students
- Freshman -- $5,500 (no more than $3,500 of this amount may be in Subsidized loan)
- Sophomore -- $6,500 (no more than $4,500 of this amount may be in Subsidized loan)
- Junior/Senior -- $7,500 (no more than $5,500 of this amount may be in Subsidized loan)
- Independent, Graduate/Professional Students
- Freshman -- $9,500 (no more than $3,500 of this amount may be in the Subsidized loan)
- Sophomore -- $10,500 (no more than $4,500 of this amount may be in the Subsidized loan)
- Junior/Senior -- $12,500 (no more than $5,500 of this amount may be in the Subsidized loan)
- Graduate/Professional -- $20,500 (not eligible for the Subsidized loan)
- Cumulative Totals (no more than $23,000 of these amounts may be in the Subsidized loan):
- $31,000 dependent undergraduate students
- $57,500 independent undergraduate students
- $138,500 graduate/professional students
Cost & Fees
- up to 1.1% fee on each loan.
- Interest begins accruing at time of disbursement. Students are encouraged to make interest payments while in school, however, they can let the interest capitalize making the loan an extremely higher loan.
Repayment
- Interest rate is a fixed 2.75% for undergraduate Unsubsidized loans and 4.30% for graduate/professional Unsubsidized loans, beginning July 1, 2020. New interest rates will be determined each July 1, with that interest rate being fixed for the life of that loan.
- Interest begins accruing from the date the funds are disbursed. The borrower may make the interest payment or have them capitalized. Payments may be deferred up to six months after graduation, withdrawal, or dropping below half-time enrollment. $50 minimum monthly payment; 10-year maximum repayment period.
- For more information about repayment please contact your loan servicer(s).
- Review studentaid.gov for your servicer and total borrowings of federal loans
Federal Direct Parent Loan For Undergraduate Students (PLUS)
Who is eligible?
Natural or adoptive parents of dependent students who meet federal government eligibility requirements can apply. A credit analysis will be required. Please review the Award Handbook for your rights and responsibilities as a parent borrower. Contact the Financial Aid Office if you have any questions.
How do I apply?
The student must complete the Free Application for Federal Student Aid (FAFSA).
The PLUS application is completed electronically. After submitting the application, the parent is notified instantly of the credit decision. If the application is approved, the parent who applied for the loan is required to complete the master promissory note - MPN for Parents - in order to borrow the loan.
Amount Available
Cost of attendance per child minus other aid is the maximum the parent is eligible to borrow in the PLUS. The Financial Aid Office determines the maximum amount allowed.
Cost and fees
- up to 4.5% fee on each loan.
- Interest begins to accrue from the date the funds are disbursed.
Repayment
- Interest rates are fixed. Current interest rate (beginning July 1, 2020) is 5.30%; July 1st of each year a new interest rate is determined.
- Repayment begins 60 days after loan is fully disbursed. $50 minimum monthly payment; 10-year maximum repayment period.
- For more information about repayment, please contact your loan servicer(s).
- Review studentaid.gov for your servicer and your total federal loan borrowings.
Federal Grants
Who is eligible?
Federal Pell and Federal Supplemental Educational Opportunity (SEOG) grants are awarded on the basis of financial need to undergraduate students. Federal TEACH Grant is based on GPA or academic testing and is available to both undergraduate and graduate students. The agreement to serve and counseling (found at: www.teach-ats.ed.gov) must be completed if student is eligible. TEACH recipients must teach 4 years in a high-need field in a low-income school as defined by the Department of Education. For additional information on federal grants please review the Award Handbook or contact the Financial Aid Office.
How do I apply?
Complete Free Application for Federal Student Aid.
The FAFSA is available after October 1 of each year for the following summer, fall and spring semesters' aid. Funding is limited for SEOG. Students who submit the FAFSA by December 1 (the priority deadline) will be considered for SEOG.
Loan Counseling
- Loan Entrance Counseling
- First time borrowers must complete Loan Entrance Counseling and a Master Promissory Note (MPN) (see link below).
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- Loan Exit Counseling
- Federal Direct Loan
- You can review your Federal Perkins Loan indebtedness on the NSLDS site link above, however for exit interview counseling please contact University Accounting Service, LLC (UAS) 1-800-999-6227 for questions about your Perkins Loan.
